a. Compute the correlation between the wattage and heating area. Is there a direct or an indirect relationship?
b. Conduct a test of hypothesis to determine if it is reasonable that the coefficient is greater than zero. Use the .05 significance level.
c. Develop the regression equation for effective heating based on wattage.
d. Which heater looks like the "best buy" based on the size of the residual?

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Solution Summary

The solution gives the complete details of estimating the effective heating area based on wattage. Regression coefficients, scatter diagram, regression model and R square value are given with interpretations.